The following Board Presentation from Dexus identifies 7 key themes for property investment in the office sector for the coming years ahead.
- Theme 1 – Uncertainty is the one thing we can be certain about
- Theme 2 – Occupier demand likely to be influenced by confidence Sydney CBD office net absorption Employment growth still solid, Government decentralising Melbourne CBD office net absorption Demand being boosted by super-strong population and jobs growth
- Theme 3 Low vacancy rates give office markets a high degree of resilience
- Theme 4 Office markets are at different points in their cycles
- Theme 5 People will keep flocking to CBDs and inner city areas
- Theme 6 Lower-for-longer interest rates will underpin investment demand Yield spreads Real estate just became more affordable Relative value Australian office property doesn’t appear expensive on a global scale
- Theme 7 Australia has the best demographics in the developed world